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| Bring a licensed agent |
Sometimes buying a pre-construction condo can be a good idea. Many times, it's risky and it's a bad idea.
How can anyone know what will happen 3-5 years into the future?
How do you make a good decision and what should you look for in your purchase? Ask a licensed agent.
BEFORE you go to the builder sales centre, speak to a licensed agent, and make sure to go together on the first visit.*
So why is that though? Here are 6 reasons:
1) your agent SHOULD BE LICENSED, and therefore working for your best interest, not for the builder.
2) repeat - a builder sales rep is working for the builder, not for you. They will give you a booklet, show you a nice building model, and will give you a price list and inventory sheet. These are units they release periodically.
3) a builder sales rep is typically not licensed. They sell you units that are released at that moment in time. Sometimes better units come up later (for more money). They might want to sell you the one that is the hardest to sell. You know, the one above the garage or garbage entrance, or has low light or a weird layout, maybe with a column or two.
4) a licensed agent will ask the builder reps about closing costs (and making sure they are capped at a fixed amount on closing), development charges, assignment privileges (ability to sell your contract to a new buyer if your situation changes), will try to negotiate upgrades if available, and any other questions you need to know.
5) a builder rep will take you through the process to buy, but may not get specific on the consequences if things change in the future.. for example, interest rate increases, builder delays, mortgage challenges, builder extortion fees before closing, and proper referral to lawyers.
6) CHOOSE A REPUTABLE BUILDER WITH A TRACK RECORD OF SUCCESS OVER A LONG PERIOD OF TIME. Your licensed agent should know who they are, and if they don't, choose an agent with experience in pre-construction sales.
*if you don't bring your licensed agent on the first visit, the builder typically won't pay a commission and subsequently your licensed agent will not be able work for you in the transaction, for your best interest.
